Monday, February 23, 2015

This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300%

 Via Jonathan

If anyone has stopped to ask just why global central banks are in such a rush to create inflation (but only controlled inflation, not runaway hyperinflation... of course when they fail with the "controlled" part the money paradrop is only a matter of time) over the past 5 years, and have printed over $12 trillion in credit-money since Lehman, the bulk of which has ended up in the stock market, and which for the first time ever are about to monetize all global sovereign debt issuance in 2015, the answer is simple, and can be seen on the chart below.

It also shows the biggest problem facing the world today, namely that at least 9 countries have debt/GDP above 300%, and that a whopping 39% countries have debt-to-GDP of over 100%!

More @ Zero Hedge


  1. Some time back I came across and article that pointed out that there has never been hyperinflation in a first world country....only in third world countries has it occurred. Wish I had kept a link to that article. Inflation will not be our downfall, it will be deflation. A quick check of the CRB index (commodity basket) and the Baltic dry Index will point out the collapse problem we face. Debt is a killer in this scenario and there is a lot of debt out there to bankrupt many people. With deflation the dollar gains in value and makes it harder than ever for those who have dollar denominated debt to pay it off.

    1. the Baltic dry Index

      Seems like that has showed such for a long time.

    2. Indy

      help me out ... if we are producing less and less, including ag products and oil, won't there be increasing prices for real goods here ? As printed FRNs come swarming back here at some point won't that fuel inflationary dynamics.

      I always have difficulty underdstanding how an increasingly worthless currency chasing ACTUAL TANGIBLE goods cannot lead to inflation and hyperinflation

      Thanks. And in any case, we Prepare Accordingly

      Comrade Igor

  2. Actually when they print FRN's many of them whether printed or digital go overseas...we actually export inflation. Perhaps out greatest export? And when local currencies are loosing a lot of their value they keep FRN that loose less value....which aggravates their currency even more. Central and South America are perfect reflections of this problem. And Comrade Chavez (recently repo'd) and our Argentinian neighbors are perfect examples of this...along with Mexico on numerous occasions over the years. They all scramble for dollars when their currencies turn to trash. And like the CRB the Baltic dry index doesn't head straight stairsteps lower.